China's cities need about 6.6 trillion yuan ($1 trillion) of green financing over the next five years to reach its pollution-reduction targets, according to a report.
Financial markets will need to cover as much as 90 percent of investment funding for clean transportation, energy-efficient buildings and renewable power through 2020, according to the executive summary of the report, "Green Finance for Low-Carbon Cities," which was commissioned by the Green Finance Committee of China Society for Banking and Finance and Bloomberg Philanthropies.
"Public funding should play a leveraging role and facilitate the entry of a large amount of private funding in the low-carbon development of Chinese cities," according to the report. "The financial sector should establish a system to differentiate potential projects based on their environmental benefits, so that green finance can effectively direct funding to low-carbon urbanization."